2010 IP Central Figures

2011/04/27,Liu Chuntian,Guo Shoukang,Zhu Yongde,Zong Qinghou,Chen Wusheng,Hou Xiaoqiang,Li Shufu,Gu Yongqiang,Steve Jobs,John Howkins,,[Comprehensive Reports]

Striving for Dreams
Liu Chuntian 
On October14, 2010, Liu Chuntian organized the International Forum on the Centennial of Chinese Copyright Legislation. In 1985, for the first time he brought IP to the classroom and listed it in the undergraduate teaching and training programs. In 1986, at the meeting of the higher education catalog formulation held by the former State Education Commission of Higher Education, he actively proposed listing IPR as a major for law undergraduates. In 1987, Renmin University of China formally enrolled students to specialize in China IPR law.
Liu Chuntian spoke excitedly at the International Forum on the Centennial of Chinese Copyright Legislation, stating that “Everyone has a dream. Is it possible for dreams to come true? My dream of establishing the IP School has truly been realized.”
Comment: Liu Chuntian has not only realized his own IP dream, but also promoted the continuous progress of China’s IP law education.
National Treasure Master
Guo Shoukang
In the early 1970s, he became engaged in IP research. He is the only expert with experience participating in the drafting of the Patent Law, Trademark Law, Copyright Law, Law of the People’s Republic of China against Competition by Inappropriate Means and Regulations on the Protection of Computer Software. He also participated in the drafting of the Foreign Trade Law, Law on Economic Contracts Involving Foreign Interests (the original version) and the Foreign-capital Enterprises Law.
In 2010, Guo called for a speeding up the revision of the Copyright Law. He expressed that “The amendment of Copyright Law should abandon the ‘minor repair principle.’ The substantive modifications should take place immediately.”
The 85-year-old Guo has a tight and almost a full schedule. “As long as the IP cause has a need for me, I will continue to strive with everyone,” Guo told China IP. As a scholar with 60 years’ experience in IP study, Guo Shoukang shows an enthusiastic expectation in China’s IP cause.
Comment: Professor Guo Shoukang is a “national treasure” master. He witnessed the IP cause from nonexistence to it continuing prospering development.
Not an Easy Job to Carry Out
Zhu Yongde
On October 13, 2010, Zhu Yongde, the President of the China Film Copyright Association and the chairman of the China Copyright Association, announced that starting January 1, 2011, the domestic Internet cafes and long-distance buses must pay nominal copyright royalties for screening the movies. When this piece of news was released, Zhu Yongde was taken back to the spotlight.
As early as in 1996, Zhu Yonde organized the right holders of Chinese films to safeguard their legal rights. Such an action had a profound impact in improving the copyright awareness of copyright holders and users.
Upon the formulation of the idea to begin charging for screening domestic films, many issues arose, such as how to charge, who to charge and how to allocate and monitor fees after they have been collected. In addition to the ineffective fee collection process taken by the MCSC from KTVs, Zhu Yonyde’s implementation of fees collection for films received much attention.
Zhu Yongde said, “It is not easy to undertake an action in China. Given that the China Film Copyright Association has just started, we have many areas that require improvement. We hope you can give us some space to develop.”
Comment:  As most people lack IPR protection awareness and feel resistant to being charged for resources which were once enjoyed for free, the CFCA is destined to stumbling a little on the path.
Keep Up with Coca-Cola in 20 Years
Zong Qinghou
Zong Qinghou, the chairman of Wahaha Group, topped the Forbes China Richest People List with a total worth of USD 7 billion and ranked the first on the Hurun Report with a total worth of 80 million Yuan. In 2009, Zong ranked the 13th on the Hurun Report. Just one year later, he became the richest man. Some said Zong’s success was greatly attributed to his victory in the battle of Danone v. Wahaha.
Combining the IP operation and practice of his enterprises, Zong points out that the result of rush registration is to hinder the process of the society; and IPR protection should not rely on the enforcement of government alone, but needs the participation of all the people.
Comment: Looking back of the fierce Danone v. Wahaha battle and then listening to the Zong’s understanding on IP application and management, we believe Chinese private enterprises are welcoming their spring around the corner.
Don’t Be Afraid to do the Right Thing
Chen Wusheng
Chen Wusheng, the chairman of General Protecht Group, is a bold enterpriser. He says that “Patents are the result of our hard research and development. I believe in justice.” Chen’s insistence made his team defeat the seemingly invincible American opponents.
In 2003, the U.S. government began to compel the use of an earth leakage protection device – Ground Fault Circuit Interrupters (“GFCI”). Four American enterprises, including Leviton Manufacturing Company (“Leviton”), owned the patented technology for GFCI and have monopolized the U.S. market for 20 years. Chen Wusheng brought his own earth leakage protection device into the U.S. market. Because of its high performance-price ratio, Protecht’s GFCI products quickly occupied the main stream market of 38 states. Protecht’s rapid development aroused panic among many American enterprises, including Leviton. They attempted to block him through alleging IP violations. Chen won the case after seven years struggle. He said, “I think it was worth it to persist in the lawsuit. If a man runs away every time he sees a policeman he will eventually be regarded as a thief. Only through legal means, can we survive.”
Comment: Overseas litigation has been a restricted area Chinese enterprises are afraid of entering. The victory of General Protecht is one of inspiration for Chinese enterprises owning independent IP rights.
Call for Original Literature
Hou Xiaoqiang
2010 was a pivotal year for Shanda Literature. Hou Xiaoqiang, CEO of Shanda Literature Limited, did two things he thought important. One was the creation of the Bambook E-book. Bambook was regarded as a spoiler in the E-book market as its price was only half of the market price. The other was the dispute involving Baidu. Shanda sued Baidu for pirating 95% of its short stories from its literature site. Hou Xiaoqiang said, “If Baidu literature exists, Chinese literature will die. Based on an initial estimate, the losses caused by Baidu’s piracy was about 1 billion Yuan in 2010.”
Comment: Hou Xiaoqiang’s outcry reminded us that the development of Chinese literature depends on the role of right holders.
Face the Toughness
Li Shufu
In March 2010, Geely purchased Volvo from Ford at a cost of USD 2.7 million. Li Shufu, as Chairman of Geely Automobile Holding Co., Ltd. was put in the spotlight. How he will get along with his new “foreign bride” has become a concern. After the purchasing of Volvo, Geely expressed that as the 100% share holder, Geely would take over Volvo’s core technologies and IPR rights. During the last two years, Chinese auto enterprises have increasingly purchased foreign auto brands. They were confident in the acquisitions, especially the IP implications. But how far they will advance is still unknown. Many problems arise after the acquisition. Li Shufu said, “If I can’t coordinate these divergences, I will surrender.”
Comment: The seven-year itch for the marriage of Geely and Volvo has ways to go. Whether they will be harmonious depends on Li Shufu’s coordination.
Pursue Copyright, Go public and Raise capital
Gu Yongqiang
According to the current share price of Youku, Gu Yongqiang, the founder and CEO of Youku.com has a net worth of USD 500 million. On December 8, 2010, Youku was posted on New York Stock Exchange for the initial public offering.
2010 was a busy year for the video industry. First, complaints involving piracy were frequently filed. Then, a calling for a genuine solution rose. Last came the fees-charging service model. It means that the “partially free and partially charged” model has become mature in the Chinese market.
Comment: Youku received much concern after it went public. Upon its success or failure, different people held different views. Yukou’s business model might become the weather vane of China’s video industry.
Innovation is the Bridge
Steve Jobs 
With the popularity of the iPhone、iPad and iPod, Steve Jobs has attracted much attention. When Steve Jobs walked on to the stage at San Francisco’s Yerba Buena Center in January, it capped the most remarkable comeback in modern business history.
Inside Apply, it is clear who calls the shots on design and development. The iPad is the culmination of an approach that he has seemingly been perfecting for his entire career. “I believe that you will start with a flat-plate of equipment. With it, you can do a lot of things…” Founder of Microsoft Bill Gates said three years ago when describing the future of computers. Jobs didn’t agree with Gates at that time and persisted on thinking that the future of computer was personal computers. In 2010, Apple introduced its flat-plate computer iPad. This time Jobs said times were changing and the traditional personal computer fans could feel their world was getting smaller.
Comment: The fantastic growth in the PC field led and changed the whole computer software and hardware industries. He is worthy of the distinguishing title “Great Industry Leader.” The difference between a leader and a follower pivots in innovation.
Father of Creative Industry
John Howkins
John Howkins, father of the creative industry, advocator of “copyright is the currency of the creative economy” and forerunner of digital media, first proposed the idea of “innovative economy” and provided consultancy for more than 20 countries. He once observed that creation is subjective and a result of team work. “Creation frequently leads to invention, but invention would not necessarily bring about creation,” which delineated a subtle distinction between the two.
In 2010, he made many visits to China. In his opinion, China is beginning to have a distinctive style, that is, Chinese are beginning to develop their own approach to contemporary creative industries. China has a very strong culture and heritage, but its contemporary style is not yet as distinctive as American, Japanese or Italian style. Chinese products sell more on their low cost than their creative inputs. The demand for Chinese media, fashion, etc, abroad is quite low. The majority of people want to watch American movies, buy Italian fashion, and drive European and American cars – not yet Chinese movies, fashion, and cars.

Comment: How can China’s creative industry achieve distinctiveness? Howkins’ remarks may bring some inspiration to the leaders who are determined to make brand enterprises.

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